It's fun to think of the stock market as a sports event. But with money in the game it's not much fun to see your side lose. On the other hand, there will always be buyers and sellers, and the most fun to be had is when buyers bid up the prices.
Anyway, investor sentiment is often a good indicator. When prices go up too much and buyers keep bidding them up -- i.e., when investor sentiment gets too high -- that's the time to be cautious. The opposite is true, too. When investors are in a panic to dump their stocks, that's often a good time to buy.
Mark Hulbert's sentiment index was always a good one to watch. But these days it costs money to see that index. Nevertheless, others attempt to gauge investor sentiment, and the one on the right hand side of this post was found at money.cnn.com called Fear & Greed Index.
Currently it's showing an 18 which they say is "extreme fear." That can be a good sign for investors.
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2:50 PM 11/27/2018
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